Indonesia Fintech Industry News - June 2017
Home loans to be available via apps in Indonesia
Home loan apps have flourished. Loans over apps have been launched in the US, EU and other parts of Europe. Moven, a company from the USA, has partnered with Kansas-based CBW Bank to issue debit cards in the U.S. M
oven now has entered into collaboration agreements with Indonesia's PT Bank Central Asia to roll out app-based home loan programmes in Indonesia.
Mobile payments growing in Indonesia
Smartphone payments technologies in Indonesia are skyrocketing. We see its deployment in motorcycle taxi users; for example, the use of the ride-hailing company Go-Jek. Go-Pay (a part of Go-Jek) can now be used for a growing number of food deliveries and personal shopping services.
Singapore-based Grab is also entering the mobile pay market in Indonesia. It will acquire a company to run an online-to-offline payment service through its network of more than 400,000 local agents in 500 cities and towns, including rural areas.
State of data and cloud computing of Indonesia’s banks
Under Government Regulation No. 82/2012 on the Management of Electronic Transactions and Systems, data and disaster recovery centres for public services must be located within Indonesia, meaning that Indonesian banks must store its customers` data within the country. Indonesian banks that previously operated data centres located overseas must repatriate their information to Indonesia.
To-date the conversion or transfers has not fully transpired. Startup companies with newer systems, however, seem to be the first ones to make the changes.
Salim Group back to banking
Salim Group is Indonesia’s largest conglomerate with assets including Indofood Sukses Makmur, the world's largest instant noodle producer, and Bogasari, a large flour-milling operation. Salim Group left the banking industry after the 1997-1998 financial crisis. After some years of varied business focus on large food industries and other sectors, the group intends to return to a more digital presence and focus. The group recently bought at least a 51% stake in Bank Ina Perdana, a small local bank, by subscribing to new shares issued by the locally listed lender.
Data storage and Alibaba
Alibaba is to open a data centre in Indonesia amidst tighter controls on data storage. Since 2012, the government had put into place rules that online companies need to have local presence and data presence in Indonesia.
Other such players in the data market include NTT Data, which announced success and significant growth in Indonesia.
PrivyID audit trail for e-signatures
Indonesian digital signature platform PrivyID announced that it has raised an undisclosed pre-Series A funding led by Mandiri Capital Indonesia (MCI). PrivyID provides an audit trail in electronic signatures for security and authenticity. It currently has 130,000 users.
Airy Rooms secures partnership with Indomaret
Cash remains the most popular means of transaction in Indonesia. Budget hotel booking platform Airy Rooms set up a partnership with local minimarket chain Indomaret. Users can now book, reserve and pay for rooms at minimarket chains.
Infonesia raises seed funding from 500 Startups
Infonesia is a Q&A platform for reaching celebrities, experts, or even the common people of Indonesia through a series of questions and answers. The company has raised seed funding from 500 Startups.
DBS to launch biometric card in Indonesia
Authentication is important for banking. DBS Singapore will launch a biometrics-based identity card system in Indonesia allowing citizens to open accounts at designated cafes. Digibank already has 1 million customers.
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